Interest rates are constantly changing, so it helps to come up with a plan of action to deal with both rate rises and falling rates
Getting the most out of your interest rate
- Don’t reduce your home loan repayments when interest rates drop, if you can afford it, continue paying the higher repayment amount. This will ultimately save you thousands in interest and shorten the life of your loan.
- Talk to your mortgage broker about new options in the market and find out if its worthwhile to refinance your mortgage to access new home loan features or cheaper interest rates.
- Negotiate a better interest rate – you can use the size of your home loan to negotiate a better deal. Get your mortgage broker to negotiate with the lenders on your behalf, they may get you a low rate that you would not otherwise have accessed.
- Consider debt consolidation as a way of reducing your monthly loan repayments – this means consolidating your credit cards and other debts under your mortgage.
- Regularly review your finance options to ensure that you are getting the most out of your home loan package. A mortgage broker can help conduct a free home finance assessment and help you develop a more personalised home loan package.
